MPSC: Annual Video Services Competition Report Shows Increase in the Number of Michigan Subscribers, Bucking the National Trend

Contact:  Judy Palnau, 517-241-3323
Agency:  Michigan Public Service Commission

February 1, 2012 - The Michigan Public Service Commission (MPSC) today issued its fifth annual report on the status of competition for video services in Michigan.  The report is required by the Uniform Video Services Local Franchise Act (Public Act 480 of 2006).

"Statewide, Michigan's video/cable market showed positive signs of growth," noted MPSC Chairman John D. Quackenbush.  "This is noteworthy since eight out of nine cable providers on a national level reported subscriber losses."

Highlights of the report include:

• In 2011, one community reported having four video/cable providers; 14 communities reported having three providers; 70 communities reported having two providers, and 172 communities reported having one provider.  Twenty-one communities reported having no providers.  Since the Act took effect, the number of communities reporting two or more providers has more than doubled.
• Three new providers began offering video/cable services to Michigan residents in 2011:  Crystal Cable TV & Broadband Internet, Martell Cable Service, Inc. and Summit Digital.
• During 2011, providers reported 2,314,081 video/cable customers in Michigan, an increase of 7,698 over what was reported the previous year.  (This does not include subscribers to satellite services.)  
• There are currently 1,960 franchise agreements (both individual franchise agreements entered into before the Act that have not expired and Uniform Video Service Local Franchise Agreements required by the Act) in Michigan, a net increase of 23 compared to the previous year.  Of the total, 1,282 are classified as the Uniform Video Service Local Franchise Agreement, an increase of 137 from the previous year.
• The top three companies providing video/cable services in Michigan are Comcast, Charter Communications, and AT&T Michigan (U-verse).  Since Jan. 1, 2007, 14 video/cable providers have begun to offer service in Michigan.
• The Commission received 757 customer complaints and inquiries in the video franchise area in 2011, a 30 percent decrease over 2010.  The most frequent complaints were:  billing, charges and credits; customer service; request for service (a new category); and equipment problems.
• Providers reported investing $400 million in the video/cable market in Michigan in 2011.  Since the Act became effective on Jan. 1, 2007, providers report having invested over $2.3 billion in the Michigan video/cable market.
• The MPSC made two recommendations to the legislature:  changing the due date of the annual report to March 1 from February 1 to provide survey respondents more time to provide information to the MPSC; and requiring providers to provide certain contact information to the MPSC.

The entire report is available on the MPSC's website here.

For more information on filing a video/cable complaint, see the MPSC's Consumer Tips sheet on the subject.

The MPSC is an agency within the Department of Licensing and Regulatory Affairs.

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